The uneven and below-average rainfall could have significant implications for agriculture, particularly in rain-fed regions. Lower soil moisture and insufficient rainfall during crop growth and maturity stages may reduce yields, affecting both kharif and rabi crops. This could lead to a rise in food inflation, which, if compounded by confirmed El Nino conditions, might push consumer price inflation (CPI) for FY27 to 5.5% or higher. The report also warns of potential economic impacts, including reduced rural incomes and consumption demand, as well as the possibility of a rate hike later in the financial year.